President Bola Ahmed Tinubu has welcomed Shell’s announcement of a $2 billion Final Investment Decision (FID) for the development of the HI shallow offshore gas field (OML 144)—marking Nigeria’s second major gas investment in 18 months and reaffirming renewed investor confidence in the country’s oil and gas sector.
In a statement, Special Adviser to the President on Information and Strategy Bayo Onanuga, said the Non-Associated Gas (NAG) project, expected to deliver about 350 million standard cubic feet of gas per day (mmscf/d) from 2028, will supply nearly a third of the gas required by Nigeria LNG Limited’s Train 7 project.
With this development, Nigeria has now attracted over $8 billion in upstream oil and gas investments through major FIDs since President Tinubu assumed office in 2023. The latest decision follows the Ubeta NAG project and Bonga North deepwater project, consolidating the administration’s efforts to unlock the country’s vast gas potential for both domestic and export markets.
According to the Presidency, the combined output from the HI and Ubeta gas projects could provide up to 15 percent of NLNG’s total feedgas needs, spanning Trains 1 to 7.
The President’s targeted energy sector reforms, coordinated through the Office of the Special Adviser on Energy, have introduced fiscal incentives, regulatory clarity, and faster approval processes, significantly cutting contracting costs and timelines. These reforms, now embedded in legislation, have been credited with restoring investor confidence and enhancing Nigeria’s competitiveness as an investment destination.
The HI field, discovered in 1985, is being developed under Presidential Directive 40, which established a new fiscal framework for Non-Associated Gas in onshore and shallow offshore fields.
Special Adviser to the President on Energy, Olu Arowolo Verheijen, said the HI and Ubeta projects will secure gas supply for NLNG Train 7 and transform Nigeria’s LNG reliability on the global stage. “These projects will strengthen the reliability of Nigeria’s LNG exports, expand domestic LPG supply, reduce imports, boost foreign exchange earnings, and enhance clean cooking access for millions of households,” she said.
Shell’s Upstream President, Peter Costello, reaffirmed the company’s long-term commitment to Nigeria’s energy sector: “This project will help Shell grow its leading Integrated Gas portfolio while supporting Nigeria’s ambition to become a key player in the global LNG market.”
The NLNG Train 7 project is expected to increase Nigeria’s LNG production capacity by 8 million metric tonnes per annum—a 35 percent rise—while creating jobs, expanding gas supply to industries, and stimulating economic growth in host communities.
President Tinubu described Shell’s latest investment decision as a “clear validation” of his administration’s reforms and a signal that Nigeria is open for business. “This major FID announcement by Shell, their second in one year, demonstrates the success of our reform efforts and renewed global confidence in Nigeria’s energy sector,” the President stated.
